New Trade Entry: SPX Weekly for March4 Cycle.
SPX Position Entered Thursday, March 14
SPX March4 Iron Butterfly
March4 SPX Iron Butterfly centered at 1560
Time of entry: 11:25 am Eastern. SPX price: 1,559.11 at entry; VIX at 11.63
Call spreads: -1560/+1590
Put spreads: -1560/+1530
Credit received: $15.05
Maximum margin/risk is $3,000 (width of wings)
Buying power reduction: $1,495 ($3,000 less credit of $1,505). This leaves $1,505 (before commissions) for adjustments.
Adjustment trigger points:
- Upside if SPX reaches 1570: Call spreads will be rolled up 20 points
- Downside if SPX reaches 1550: Put spreads will be rolled down 20 points
Closing order is in to close the position for a $13.45 debit, which will be a net gain of $150 after commissions.
Trade will be exited if max loss of $300 is reached
I will post an update as the trade progresses.
As always, stay keen on your risk management and trade carefully.